Nabucco 'less attractive' than other gas export projects

Mon 21 Nov 2011 07:08 GMT | 11:08 Local Time

Text size: bigger smaller

News.Az interviews Gal Luft, executive director of Washington-based think-tank the Institute for the Analysis of Global Security (IAGS).

The whole of Europe is talking about its interest in Caspian energy sources; there are numerous ideas about supply routes and methods and many projects have been suggested, but little action is seen to implement them. What is the problem?

This is one of those issues that everyone knows the solution to. It's a matter of getting on with it. There are people here who talk about a lack of determination and clarity about the future of the economic system and, why not, the future of Europe. Many view Europe as a single community, but this has to be proved. Europe must have a single approach to this issue. Unlike most of my colleagues, I am sceptical. In fact, the window of opportunity is closing rather than opening.

What are the prospects for the Trans-Caspian gas pipeline, bearing in mind the strong opposition from Russia?

Nothing that Russia has opposed has ever come into being. This is the reality. I think the chances of the project are not high now.

How realistic is Nabucco?

I think the Nabucco project has lost its relevance. There are now cheaper and better alternatives to Nabucco. Nabucco seems less attractive than other projects in the Southern Corridor.

Some experts believe that Azerbaijan should consider exporting to Asia rather than limit itself to the western and northern routes for oil and gas exports. What do you think about this?

This is an interesting direction, since Asia has the demand and the money. I would be no less enthusiastic about this route than the route to Europe. Turkmenistan should follow this policy. I would recommend the eastern direction as more promising than the western, especially since this includes China with its growing gas demands.

Can Europe follow the proposal of the Bulgarian president to grant special status to Azerbaijan amongst the Eastern Partnership states as an alternative supplier of energy sources?

I am not sure that the European Union today is able to achieve any agreement on any issue. The organization is experiencing many problems at the moment, which is why I am sceptical about it.





Most read articles

More from Economy

In The Region

Editor's Picks

Azerbaijan Cuisine

Explore the food of Azerbaijan - from sherbet to succulent kebab, from baklava to fragrant pilaff

Follow us

Find us on Facebook

Real estate

Virtual karabakh